According to BlockBeats, on August 21, CryptoQuant analyst Axel Adler Jr. stated that Bitcoin continues to decline from its historical highs. The one-year MVRV Z-Score has retreated to near neutral, currently slightly below zero, indicating that the unrealized profits on the network have compressed compared to the one-year average level, with more supply at breakeven or loss.
The key support level for Bitcoin is at the realization price of $106,000 for short-term holders. If the price falls below $106,000, short-term holders will be in an overall loss position, and the market faces the risk of a deeper pullback.
The recovery signal is that the Z-Score continues to rise above zero, while the price re-establishes itself above $118,000.
